Man Arrested in Kathmandu for Alleged Illegal Cryptocurrency Trading; Over NPR 190 Million in Digital Transactions Uncovered

A man has been arrested in Kathmandu for allegedly conducting illegal cryptocurrency transactions, according to Nepal Police. Mohammad Saif, a resident of Kalaiya Municipality in Bara district and currently living in Dallu, Kathmandu Metropolitan City–15, was taken into custody following a special tip-off. Kathmandu District Police Range spokesperson Pawan Kumar Bhattarai confirmed that Saif had been operating crypto-related activities from his residence in the capital.

Police seized two mobile phones used for conducting transactions through various digital platforms. Preliminary investigations revealed that Saif had carried out more than NPR 198.1 million (over 19 crore 81 lakh) worth of cryptocurrency transactions using those devices. Authorities believe he had been actively involved in large-scale virtual currency trading despite Nepal’s legal restrictions.

Cryptocurrency trading, use, and promotion are banned in Nepal, and those found engaging in such activities can be prosecuted under existing cyber and financial laws. Following the arrest, police sought additional time for deeper investigation, and the Kathmandu District Court granted a five-day extension to continue the probe.

According to police officials, surveillance against illegal digital and financial activities has been intensified. They noted that arrests connected to cryptocurrency transactions have increased in recent months, underscoring growing challenges in monitoring and regulating emerging online financial channels.